Endowments are financial investment vehicles designed to withstand economic instabilities through sensible investing practices. An endowment continues to grow while earnings are distributed each year to the named nonprofit organization. Income will be provided in perpetuity and will safeguard against unpredictable future donor giving and economic hardships.
Endowments are perfect for parishes, schools, and nonprofit organizations. Families can also create an endowment to benefit their favorite cause, ensuring their support given in perpetuity!
We are called to be good stewards of our property, buildings, programs, and services. This call to stewardship includes securing the necessary funds to cover today’s expenses, as well as building capacity for future growth. Endowments are critical to the longterm
survival of parishes, schools, and nonprofit organizations because they provide a permanent and stable source of income over time, even in times of uncertainty.
The graph on the left represents the key value and purpose of an endowment. As time goes on, endowments aim to close the gap between expenses and the amount of donations needed to break even on an annual basis. As the endowment balance grows, fewer donations are needed to sustain your operations. The sustainability and predictability of the endowment income is high, while the amount of donations each year is unpredictable and subject to economic and social factors outside of the control of the nonprofit. This inconsistency can lead to shortfalls and potential disruption to the mission.
With your initial contribution, CCF will work with you to establish fund parameters according to your wishes and will invest your money into Catholic screened portfolios.
The principal of the fund continues to grow through investment returns and any donor contributions you or anyone else chooses to make.
Income disbursements occur every year to the beneficiary of the endowment, in this case, your parish. Annual disbursements amount to a percentage of the average balance, providing your parish income they can rely on year after year!